Facebook, Inc., is a publicly held corporation and issued its financial statements for 2015 earlier in 2016. To follow is a condensed and adapted trial balance as of December 31, 2015, that was constructed from those financial statements. Please note that the accounts have been adapted and condensed for educational use and should not be […]
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Would the costs related to Cedar Point’s Valravn roller coaster be expensed or capitalized?
August 30, 2016 
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Cedar Point is an amusement park in Ohio and has 18 roller coasters. In 2016, Cedar Point added the Valravn roller coaster. Valravn has a height of 223 feet and a top speed of 75 miles per hour. It has a 4-second pause at the top of its first hill and then it plunges down […]
Continue readingIs a favorable raisin quantity variance good for Kellogg’s Raisin Bran?
August 25, 2016 0 Comments
Kellogg’s Raisin Bran is famous for its advertising slogan of “Two scoops of raisins in every box.” The current box design for Raisin Bran shows two scoops of raisins on the front of the box. A few months ago, a post went viral on Reddit that showed a picture of the raisins actually found in […]
Continue readingWhat information is provided in Facebook’s basic financial statements?
August 23, 2016 0 Comments
Facebook, Inc., is a publicly held corporation and is frequently in the news. For example, in August 2016, it announced a new feature called “Lifestage,” which is an iOS app that emulates Snapchat and is designed to be used by teens. Also in that same month, Mark Zuckerberg sold $95 million of his Facebook shares. […]
Continue readingTechnology tip: How to keep the original formatting when copying a slide into a PowerPoint file
August 18, 2016 0 Comments
At the annual American Accounting Association conference last week, one of my co-presenters had our original PowerPoint file on her computer. I had a slide that I wanted her to insert into that main PowerPoint file we were going to use to present. When she inserted my slide, my slide lost its formatting to take […]
Continue readingHow many snow cones need to be sold for a Snowie™ snow cone cart to break even?
August 16, 2016 0 Comments
Snowie™ is a brand of flavored shaved ice that is sold in snow cones at a variety of events and locations across the United States. Recently, a Snowie™ cart was spotted at the Kent Heritage Festival this summer. During this festival, street vendors offer a variety of foods and drinks. At the Snowie™ cart, festival […]
Continue reading8 revenue recognition exercises for introductory financial accounting featuring LL Bean
August 4, 2016 4 Comments
In 2015, FASB updated the revenue recognition standards. While most of the impact of the revised revenue standard will impact Intermediate Accounting coverage, some changes will also need to be made to update introductory financial accounting coverage. Using hypothetical examples featuring LL Bean, I have developed a set of classroom exercises (and solutions) that can […]
Continue readingWhat type of responsibility center would Mickey Thompson Performance Tires be for Cooper Tire & Rubber Company?
July 12, 2016 0 Comments
Mickey Thompson Performance Tires (https://www.mickeythompsontires.com) designs, develops, and distributes specialty tires for drag racing and other motor sports. The company was founded in 1963 and the company holds several patents related to tires. Cooper Tire & Rubber Company (CTB), the 12th largest tire company in the world, purchased Mickey Thompson Performance Tires in 2003. Mickey […]
Continue readingWhat internal controls might have prevented the $1.4 million kickback fraud scheme at Utz?
July 5, 2016 4 Comments
Utz Quality Foods Inc., a snack food company based in Hanover, Pennsylvania, was recently the victim of a $1.4 million fraud scheme. Utz’s former director of purchasing acting together with an Utz vendor allegedly ran a false invoice kickback scheme. During the several years over which the fraud allegedly occurred, Jonathan Haas was the owner […]
Continue readingWhat type of quality costs would the torn PUMA soccer jerseys be considered?
June 30, 2016 0 Comments
At a European Championship game for men’s soccer in June 2016, at least four of Switzerland’s red jerseys were torn during the game again the French team. Three of the Swiss jerseys torn around the numbers. The wardrobe malfunctions left the players with large parts of their backs exposed until they could get to the […]
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